The DDA launched its housing scheme 2017 on June 30, offering more than 12,000 flats that cost anything between R 7.07 lakh and R 1.26 crore.

For the LIG (lower income group) category, the registration fee is R 1,00,000 while for the middle income group and high income group flats, R 2,00,000 will be charged.

An official at Central Bank of India said a key reason banks are not making such offers this time is the forfeiture clause. In 2014, applicants got loans from banks for the registration money on a one-time payment of R 5,000.

Seeking to deter “unserious buyers” and check market speculation, the DDA this time has proposed penal measures.

If a prospective buyer surrenders his application before the draw date, no money will be deducted from his or her registration fee. If a buyer does so after the draw but before the issue of a demand letter, 25% of the registration fee will be forfeited.

If the flat is surrendered within 90 days of the issue of the demand letter, 50% of the fee would be cut. Beyond that time, the entire registration fee will be forfeited.

“If we give loans to the buyers and they decide to surrender the money, how will we recover the amount?,” he said.

Most banks will stick only to salary account holders this year while giving loans for registration money.

If your name does not appear in the draw of lots, the registration fee will be refunded. If you hit the jackpot, you will be required to pay the remaining amount of the cost of the house.

“The scheme is in the initial stage and most people are coming for forms. But the bank will give loans to salary account holders. We will also see his income and the flat category he is applying,” said a State Bank of India official.

“In the last scheme, the banks had no problem in giving loans because we paid directly to the DDA and if the person’s name did not appear in the draw of lots, the money was automatically refunded to the bank’s account. This year, however, due to forfeiture clause, this will not happen,” he said.

On the third day of selling of forms, the queues were small at most banks. The only long queue was seen at DDA headquarters at Vikas Sadan.

A senior DDA official said the forfeiture clause was initiated to stop non-serious buyers and brokers so it is good that the banks are not getting overcrowded and only “genuine” buyers are turning up.